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PRESIDENT Arroyo Wednesday ordered the Toll Regulatory
Board (TRB) to cut toll rates in the North Luzon
Expressway (Nlex) beginning June 30, citing the vastly
improved peso-dollar exchange rate that had allowed
operator Manila North Tollways Corp. (MNTC) to reap a
“financial windfall.”
She said
lower toll would help cushion the costs of transporting
food and construction materials, among others, within
Luzon.
The MNTC,
through its president Jose de Jesus, welcomed the
President’s move, saying it had, in fact, filed five
months ago with the TRB a petition to use a new rate
formula, and the Palace directive would have the effect
of speeding its approval and implementation.
De Jesus
said a reduction in Nlex toll fees is expected because
foreign-exchange fluctuation will no longer be a
component of the company’s proposed new toll-rate
formula.
“The
announcement by President Arroyo will pave the way for
the approval of the new toll-rate adjustment formula
submitted by MNTC to TRB. The operation of the new
formula will reduce the toll in Nlex since MNTC will
realize foreign-exchange gains, which shall be passed on
to NLEX motorists in the form of lower toll rates. TRB’s
approval of the new formula will facilitate MNTC’s
conversion of its remaining US dollar to peso,” said de
Jesus.
The
components of the current toll fees include a base rate,
currently pegged at P0.82; inflation; and
foreign-exchange rate or forex. The current formula
allows toll fees at Nlex to have an upward adjustment
every two years. The last adjustment was in 2007.
The
proposed new formula is no longer subject to forex
fluctuations, said de Jesus.
MNTC’s
application for a new toll rate formula is still pending
with the TRB. But the President announced a directive to
implement the new rate formula so that Nlex motorists
will pay much lower fees.
Speaking
at the Minalin Egg Festival in Minalin, Pampanga, the
President said reduced toll rates—which she noted would
remain at that level in the next 30 months—are intended
to lower prices of food products and construction
materials in Central and Northern Luzon, and Metro
Manila.
“The
foreign-exchange [savings] shall be passed on to Nlex
motorists in the form of lower toll rates. I hereby
direct the TRB to implement the downward adjustment of
Nlex toll rates as a result of the new toll rate formula
to take effect on June 30th this year 2008,”she said.
The toll
rate reduction will be based on a new toll rate
adjustment formula which she also ordered the TRB to
approve that day. The new formula, she said, “should
result in package of benefits for all types of vehicles
using Nlex.”
Mrs.
Arroyo added, “TRB’s approval of the new formula will
facilitate the MNTC’s conversion of its remaining US
dollar loans into pesos. The operation of this new toll
rate adjustment formula will reduce the toll in Nlex
since MNTC will realize foreign-exchange rates resulted
from the favorable economic conditions.”
The MNTC
secured its dollar-denominated loans to rehabilitate the
NLEX at an average exchange rate of P54 to $1, which is
factored in the computation of its toll matrix, but this
has since improved to P43 to $1.
“It’s
clear that the MNTC can pass on part of its huge
windfall to the public via reduced toll rates….Transport
groups now estimate that debt-service cost of MNTC for
its Nlex loans is now 31 percent lower because of the
favorable exchange-rate regime and favorable interest
rate regime,” she said.
With the
reduced toll rate, bus fares of major operators plying
Nlex would, Arroyo said, “hopefully remain at the 2004
level.”
She
added: “The resulting stability of the toll rate will
generate for Nlex motorists an additional benefit:
First, there shall be no increase of toll rate within
the next two years and six months.
Second,
subsequent increases shall be in smaller increments,
owing to the new adjustment rate formula that is no
longer subject to foreign-exchange fluctuation.”
Mrs.
Arroyo said the toll-rate reduction “will bring relief
to the area within the Nlex axis particularly Metro
Manila,
North Luzon, Central Luzon. This is expected to bring
down the cost of rice, and basic food items, and
construction materials.”
The
government has been looking for ways to reduce Nlex toll
rates in view of the stronger peso, the same reason
earlier given by the Provincial Bus Operators
Association of the Philippines for the MNTC to consider
a toll rate cut.
This
will be the second time the toll will be reduced at the
Nlex. In January last year, the TRB reduced the toll by
10 percent.
The TRB
did not say how much Nlex toll fees will cost beginning
June 30. Officials, when sought for comment, said they
were not formally informed yet of the President’s
directive. |
